Water use in mineral sands mining

Water is essential in mineral sands mining. Operators must follow strict rules to ensure that this natural resource is used appropriately, equitably and in accordance with environmental guidelines.

How water is used

  • Dust control – special trucks spray water to lightly wet roads and work areas to stop dust from spreading
  • Moving materials – water is added to extracted minerals to create a slurry, making the minerals easier to transport
  • Processing – water washes and separates minerals from the sand
  • Rehabilitation – water helps plants grow and stabilises soil after mining

Where water comes from

  • Groundwater – water stored underground in geological formations known as ‘aquifers’
  • Surface water – this includes rivers, streams and reservoirs
  • Recycled water – reused for processing, dust control, equipment cooling and cleaning
  • Commercial water purchases – mining operations can buy extra water from other water suppliers, if needed

Rules and safeguards

Mines must have a licence to access water. The licence sets out how much water can be used, where it comes from and how it can be used. This includes environment protection requirements.

Mines monitor their water to:

  • track how much they use
  • check for leaks and/or contamination
  • make sure water is used as approved.

Water is also tested to check quality. If a mine breaks these rules, it may face fines, future water restrictions or legal action.

Fair access for everyone

All water users – including farmers, residents and industries – must operate within Victoria’s water entitlement and licensing framework.

Water is shared through a legal system of entitlements. The amount available can change based on supply. It may be higher when more water is available and lower when there is less – for example, during drought. Water for essential human needs and the environment is protected through this framework.

Mining operators:

  • must stay within approved limits
  • are not prioritised over other users
  • cannot take extra water without approval.

If a mining operation needs more water, it can buy it from other entitlement holders under strict trading rules.

Find out more about water usage.

Page last updated: 01 Jun 2026